A Guide To Planning Your Family's Financial Future

July 09, 2020

A Guide To Planning Your Family's Financial Future

The day you start a family, making yourself involved in financial planning become paramount. However, discussion over such a niche topic is never commonly witnessed in any family. You may have savings, but would that suffice your family’s financial goals? In this article, let’s get to know how to plan your financial future of your family.

Once you get married and decide to have children, life may seem to be full circle; but your personal finance condition may go for a toss. Financial complication is just the tip of the iceberg. If there is imbalance in monetary arena, you will be unable to save enough for the future. It is crucial to begin family financial planning at the earliest.

Family financial planning is a process of meeting the future goals of your family on a priority basis. The whole approach will get your finances in order and set on a right path to achieve the financial goal.

Why Do You Need Family Financial Planning?

  • You need to secure the financial future of your child
  • A plan will help you know what you can and what you can’t spend your money
  • You may want to cut down spending on unnecessary things
  • To ensure family’s financial security at every phase of life

How to Plan Family’s Future?

Set your financial goals: To begin with financial planning for your family, you need to set goal. Whether you want to enrol your child in the best university for overseas education or you want to purchase a new home, you should set a savings goal.

Create A Budget: Once you define your goals, work towards a monthly budget. It may sound easy, but when you actually start implementing it, you will surely have a tough time. Still you need to do it to eliminate any debt and enhance our financial planning. A monthly budget should generally include fixed expense, variable expenses and annual costs.

Opt For An Investment Plan: Now is the time to make your investment game strong. You can start with a less risky investment option like iWish Flexible Recurring Deposit, a product of ICICI Bank. The account has an interest rate similar to a typical FD. You can initiate goal-based savings from amount as low as Rs <50>.

Create an Emergency Fund: A financial crisis can strike anytime in your family, hence be prepared for it proactively. An emergency fund is basically in the form of liquid cash which will cover expenses for around 6-9 months. If you face any shortage of money during the birth of your child, then you can use this fund to cover up the cost.

Plan For Your Child Future: As your child grows, the expenses also rise. You need to shell out money for education, tutorials, activities, hobbies, sports, camps, etc. For this purpose, you can start investing in Unit Linked Insurance Plan (ULIP), wherein your premium is invested in equity and other financial instruments to generate returns. In case, you’ve failed to save for your child’s future, you can still nurture their aspirations through an Education Loan from ICICI Bank.

Every family needs to have a financial plan. It will help to meet your long-term goals. Family members should openly discuss monetary issues, goals and successes, so that it is easier to stay on the right path.

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